At $8.48bn, Nigeria’s Capital Importation Hits 3-year High In 2019Q1

Data by Nigeria’s National Bureau of Statistics (NBS) on Tuesday, July 2, 2019, shows that capital imported into the country between January and March increased by a significant 216% to $8.48bn, when compared to the level in 2018Q1.
The figure also surpassed the 2018Q4 level by 34.6%, even as this is the highest quarterly capital importation level since 2017Q1, according to the bureau.
Portfolio investment was, however, the dominant vehicle at $7.145bn or 84.19% of the total inflow, leaving only $1bn or 11.79% for other investments such as loans, among others, while $0.24bn represented foreign direct investment inflows.
Not surprising and helped by the near risk-free nature of such investment, money market instruments attracted all of $5.924bn, representing a quarter-on-quarter rise of 376.95% and year-on-year growth of 67.94%. It was followed by the $656.19m inflow into the equity market, a QoQ growth of 110.36% and 6.47% YoY; while bonds attracted $565.65m or 173.61% QoQ rise and 68.41% growth YoY.
A sector-by-sector breakdown of the inflow showed that the banking recorded $2.851bn; followed by shares (equities) at $2.403bn; just as financing attracted $2.139bn; ahead of the $418.44m inflow to the production sector and$409.48m into servicing, among others.
By destination, the bulk of the inflow was in March when the nation recorded $4/63bn, followed by $2.023bn in the previous month and $1.831bn in January; just as Lagos was the most attractive destination with a total of $4.773bn, or 56.25% of the total capital inflow in Q1 2019. Abuja followed with a total of $3.585bn, out of which the month of March recorded $2.292bn.
While war-torn Borno recorded the lowest inflow of $25m, Oando received $26,000; Delta, $40,000; Akwa Ibom got $55,035; and Anambra, $50,000. There was however data for states like Edo.
Capital importation by bank showed that Stanbic IBTC Bank attracted the lion’s share of $3.606bn or 42.52%, the bulk of which was in March at $2.338bn; followed by Rand Merchant Bank’s $1.368bn; Standard Chartered Bank’s $1.072bn.
Also, by country of origin, the United Kingdom emerged top with $4.531bn, accounting for 53.40% of the total capital inflow in Q1 2019; ahead of the United States’ $1.532bn; while $763.505m flowed in from South Africa.